Shareholder Returns

The Company considers the stable shareholder returns and the securing of management resources for future growth to be one of its most important management priorities. Accordingly, it has set the total payout ratio as an indicator of shareholder return, taking into consideration its overall profitability and financial condition. In addition to dividends based on business performance, the Company has conducted flexible share repurchases, considering the balance between the use of capital for medium- to long-term profit growth and the effects of improving capital efficiency, and has provided stable profit returns to shareholders with a target total payout ratio of approximately 30 - 40%. In the new medium-term management plan, "VISION 2030," announced on May 1, 2026, we have established a new policy to raise the upper limit of our total payout ratio, targeting a range of 30% to 45%.

The year-end dividend for the fiscal year ended March 31, 2026, has been set at 12 yen per share, based on the profit performance and the aforementioned policy. As a result, the annual dividend per share for the fiscal year ended March 31, 2026, is scheduled to be 18 yen, including the interim dividend of 6 yen determined at the end of the second quarter. This represents an increase of 3 yen from the dividend of the fiscal year ended March 31, 2025.

For the fiscal year ending March 31, 2027, the Company will strive to improve business performance and financial position. Based on the new policy above, the annual dividend per share is forecast to be 20 yen (10 yen at the end of the second quarter and 10 yen at year-end), representing a further increase of 2 yen from the previous fiscal year.